Party City officially files for bankruptcy and closes its US stores

After 40 years of national market presence and stores across the country, Party City is shutting down. This decision comes alongside an official bankruptcy filing from the company.

Barry Litwin, the CEO of the company specializing in party decorations and celebrations, stated in a press release that it is "necessary to immediately begin a liquidation process."

Inflation, an accumulated debt as well as changes in the market and consumer habits are the main causes that have forced the brand to go out of business. Party City was founded in 1986, 38 years ago, in East Hanover, New Jersey.

The bankruptcy and the announcement of store closures in the United States will not affect the brand's operations in Canada for the time being.

All company employees were furloughed as of this Friday in the United States according to CNN. The company anticipates stores will close in early February.

This includes more than 700 stores around the country, both directly owned and operated and franchises.

Party City's financial troubles came to light in 2023 when the company filed for bankruptcy under Chapter 11. By the end of the process, it claimed to have eliminated up to $1 billion in debt.